News Releases

CALGARY, ALBERTA--(Marketwired - Feb. 19, 2015) - Bonterra Energy Corp. (Bonterra or the Company)(www.bonterraenergy.com) (TSX:BNE) is pleased to provide an operational update as well as the results of its independent reserve report prepared by Sproule Associates Limited with an effective date of December 31, 2014.

Operational Highlights

Record average daily production for the full year of 13,195 barrels of oil equivalent (BOE) per day (71 percent oil and liquids), an increase of 8 percent over the same period in 2013.

Record average daily production of 13,488 BOE per day in the fourth quarter, an increase of 8 percent when compared to the fourth quarter of 2013.

Production per fully diluted share increased over 2 percent to 0.150 BOE per share from 0.147 BOE per share from the prior year.

The Company has not released its audited 2014 financial results, and therefore the numbers provided are currently estimates and unaudited.

Corporate Reserves Information

Bonterra engaged the services of Sproule Associates Limited to prepare a reserve evaluation with an effective date of December 31, 2014. The gross reserve figures from the following tables represent Bonterra's ownership interest before the deduction of royalties and before consideration of the Company's royalty interests. Tables may not add due to rounding.

Reserves per fully diluted share (P+P) increased to 2.50 BOE per share compared to 2.47 BOE per share from the prior year.

Reserve life index of approximately 17 years on P+P basis, 13 years on a proved basis, and 7 years on a proved developed producing (PDP) basis (based on 2014 average production rate of 13,195 BOE per day).

Barrels of Oil Equivalent may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 MCF: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead

Reconciliation of Company Gross Reserves by Principal Product Type as of December 31, 2014

Light and Medium Oil and

Natural Gas Liquids

Natural Gas

BOE(1)

Proved plus

Proved plus

Proved Plus

Proved

Probable

Proved

Probable

Proved

Probable

(Mbbl

)

(Mbbl

)

(MMcf

)

(MMcf

)

(MBOE

)

(MBOE

)

December 31, 2013

40,251

55,616

83,070

116,190

54,096

74,980

Extension

1,547

1,917

17,829

22,378

4,519

5,647

Infills

6,281

7,992

7,320

9,371

7,501

9,554

Improved Recovery

-

-

-

-

-

-

Technical Revisions

153

(5,006

)

8,535

(455

)

1,575

(5,082

)

Discoveries

-

-

-

-

-

-

Acquisitions

32

40

111

138

51

63

Dispositions

-

-

-

-

-

-

Economic factors

(64

)

(31

)

(403

)

(401

)

(131

)

(98

)

Production

(3,427

)

(3,427

)

(8,334

)

(8,334

)

(4,816

)

(4,816

)

December 31, 2014

44,774

57,101

108,128

138,887

62,795

80,248

(1)

Barrels of Oil Equivalent may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 MCF: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead

Summary of Net Present Values of Future Net Revenue as of December 31, 2014

Net Present Value Before Income Taxes

Discounted at (% per Year)

($000's)

0%

5%

10%

Reserve Category:

PROVED

Developed Producing

1,306,489

892,760

684,204

Developed Non-Producing

49,521

30,494

22,071

Undeveloped

956,643

515,200

304,571

TOTAL PROVED

2,312,653

1,438,454

1,010,846

PROBABLE

913,471

467,586

301,792

TOTAL PROVED PLUS PROBABLE

3,226,124

1,906,040

1,312,638

Finding, Development and Acquisition (FD&A) Costs

The Company has historically been active in its capital development program. Over three years, Bonterra has incurred the following FD&A(3) costs excluding Future Development Capital:

2014 FD&A

2013 FD&A

2012 FD&A

Costs per

Costs per

Costs per

Three Year

BOE(1)(2)(3

)

BOE(1)(2)(3

)

BOE(1)(2)(3

)

Average(4

)

Proved Reserve Net Additions

$11.60

$23.63

$13.64

$18.52

Proved plus Probable Reserve Net Additions

$15.54

$20.12

$16.05

$18.71

Over three years, Bonterra has incurred the following FD&A (3) costs including Future Development Capital:

2014 FD&A

2013 FD&A

2012 FD&A

Costs per

Costs per

Costs per

Three Year

BOE(1)(2)(3

)

BOE(1)(2)(3

)

BOE(1)(2)(3

)

Average(4

)

Proved Reserve Net Additions

$18.93

$24.80

$20.91

$22.47

Proved plus Probable Reserve Net Additions

$22.67

$21.06

$21.62

$21.45

Finding and Development (F&D) Costs

Over three years, Bonterra has incurred the following F&D (3) costs excluding Future Development Capital:

2014 F&D

2013 F&D

2012 F&D

Costs per

Costs per

Costs per

Three Year

BOE(1)(2)(3

)

BOE(1)(2)(3

)

BOE(1)(2)(3

)

Average(4

)

Proved Reserve Net Additions

$11.53

$17.10

$13.56

$13.46

Proved plus Probable Reserve Net Additions

$15.49

$13.41

$18.79

$15.85

Over three years, Bonterra has incurred the following F&D(3) costs including Future Development Capital:

2014 F&D

2013 F&D

2012 F&D

Costs per

Costs per

Costs per

Three Year

BOE(1)(2)(3

)

BOE(1)(2)(3

)

BOE(1)(2)(3

)

Average(4

)

Proved Reserve Net Additions

$18.89

$21.38

$22.26

$20.33

Proved plus Probable Reserve Net Additions

$22.67

$17.04

$26.61

$22.00

(1)

Barrels of Oil Equivalent may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 MCF: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

(2)

The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserve additions for that year.

(3)

FD&A and F&D costs are net of proceeds of disposal and the FD&A costs per BOE are based on reserves acquired net of reserves disposed of.

(4)

Three year average is calculated using three year total capital costs and reserve additions on both a Proved and P+P reserves on a weighted average basis.

Certain financial and operating information, such as production information, and finding and development costs included in this press release for the quarter and year ended December 31, 2014 are based on estimated unaudited financial results for the year and are subject to the same limitations as discussed under Forward Looking Statements set out below. These estimated amounts may change upon the completion of audited financial statements for the year ended December 31, 2014 and changes could be material.

It should not be assumed that the estimates of future net revenue presented in the above tables represent the fair market value of the reserves. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material. Estimates of reserves and future net revenues for individual properties may not reflect the same confidence level as estimates of reserves and future net revenues for all properties due to the effects of aggregation.

Caution Regarding Engineering Terms:

Disclosure provided herein in respect of barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. In accordance with NI 51-101, a BOE conversion ratio of 6 MCF to 1 barrel has been used in all cases in this disclosure. This BOE conversion ratio is based on an energy equivalency conversion method primarily available at the burner tip and does not represent a value equivalency at the wellhead.

Forward-looking Information

Certain statements contained in this release include statements which contain words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "will", "believe" and similar expressions, relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about development, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis made by us derived from our experience and perceptions. Forward-looking information in this release includes, but is not limited to: expected cash provided by continuing operations; cash dividends; future capital expenditures, including the amount and nature thereof; oil and natural gas prices and demand; expansion and other development trends of the oil and gas industry; business strategy and outlook; expansion and growth of our business and operations; and maintenance of existing customer, supplier and partner relationships; supply channels; accounting policies; credit risks; and other such matters.

All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties, and assumptions are difficult to predict and may affect operations, and may include, without limitation: foreign exchange fluctuations; equipment and labour shortages and inflationary costs; general economic conditions; industry conditions; changes in applicable environmental, taxation and other laws and regulations as well as how such laws and regulations are interpreted and enforced; the ability of oil and natural gas companies to raise capital; the effect of weather conditions on operations and facilities; the existence of operating risks; volatility of oil and natural gas prices; oil and gas product supply and demand; risks inherent in the ability to generate sufficient cash flow from operations to meet current and future obligations; increased competition; stock market volatility; opportunities available to or pursued by us; and other factors, many of which are beyond our control.

Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do, what benefits will be derived there from. Except as required by law, Bonterra disclaims any intention or obligation to update or revise any forward -looking information, whether as a result of new information, future events or otherwise.

The forward-looking information contained herein is expressly qualified by this cautionary statement.

The TSX does not accept responsibility for the accuracy of this release.